Travel Agent - August 18, 2008 - (Page 98)

TR ANSPORTATION The Pros and Cons of Car Rental Insurance BY JENA TESSE FOX How to ensure clients’ protection when renting a vehicle THE QUESTION OF RENTAL INSURANCE COMES UP NEARLY EVERY TIME ONE OF YOUR CLIENTS RENTS A CAR, and the decision can be a difficult one: What are the odds that the car will be involved in an accident, and how much insurance would actually be necessary? Rental insurance can often feel like a waste of money, especially when it seems to cost as much as the car rental alone. “Many times, purchasing full rental insurance is unnecessary,” says Cathy Lewis, MetLife Auto & Home’s national rental coordinator. A rental car qualifies as a “non-owned automobile” under most personal auto policies, she explains, meaning that a vehicle’s coverage carries over to any vehicle that a driver rents. And if a personal policy doesn’t provide coverage, a credit card might. Most credit card companies commonly provide insurance protection for rental cars, if the full amount of the rental is charged to the card. This is generally called “secondary” insurance, because it will only pay when one’s personal auto policy does not. Consumers should always check with their creditors to confirm the services provided, and the coverage limitations, before renting the car. But even with these existing protections, Lewis cautions, there are times when additional insurance coverage may come in handy for your client. To that end, a collision damage waiver and liability insurance can be very helpful if the unexpected occurs. With a collision damage waiver, the rental company agrees not to hold the renter responsible for accidental damage or loss, as long as the conditions of the contract aren’t violated. If the driver’s creditor or insurance agent can confirm that any damage would be covered by the credit card or an existing policy, they can skip the waiver. In addition, “partial collision damage waivers” are available in some states, which will cover the cost of any deductible that the automobile policy contains. 98 | TravelAgent August 18, 2008 Regardless of the method, it is important for your clients to have some form of rental car insurance Rental companies offer the option of purchasing liability insurance, although personal auto policies already provide liability insurance in the event someone is injured in an accident. The additional amount of coverage can vary, but keep in mind that if the state where the accident occurs requires higher minimum limits than what one’s personal policy affords, auto insurers are legally required to provide that state’s minimum level of coverage. Also bear in mind that if the vehicle needs repair work, a personal insurance policy may not pay for the loss of rental income while the auto is out of service, or for “incidental” items such as towing, storage and any administrative costs that the rental company may incur. In all cases, the best bet for your clients is to place a quick call to their insurance carrier or local insurance agent before leaving on vacation. “Your local insurance expert can probably tell you in five minutes all you need to know about your rental insurance needs for any given trip,” says Lewis. “That quick call could save you some grief later on down the road.” I CONNECTING YOU To learn more about the ins and outs of car rentals, visit www.travelagentcentral.com/transportation http://www.travelagentcentral.com/transportation

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Travel Agent - April 18, 2008 Online Now Contents From the Editor Pacific/Asia: Visitors to Ubud will Discover the Essence of Balinese Art and Culture Special Supplement: Malaysia Travel Planner New Zealand: There is Plenty to See and Do Throughout the West Coast of the Southern Alps Europe: Beauty, History and Culture Combine in Valencia, Spain Caribbean: Scrub Island is the BVI’s First Development in 15 years The Wyndham Rio Mar’s $40 Million Makeover is Well Underway in Puerto Rico The Latest on Grenada, a Caribbean Up-and-Comer Mexico: Big Hotel Plans are in the Works for the Riviera Nayarit Florida: Loews Portofino Bay Hotel turns Orlando into Italy Las Vegas: Dinner at these Restaurants Can Get your Clients into Vegas’ Hottest Nightclubs Cover Story: Medical Tourism Special Supplement: Destination Weddings Specialist 3.0 Hotels: Everything Old is New Again at New York’s Algonquin Cruise: Short Cruises Keep your Clients on the Move for Less Group Travel: Disney makes Exotic Locales Friendly for Family Travel Car Rentals: How Much Insurance Does your Client Need for a Rental Car? Agency Profile: Corporate Travel Sales are Rising at MTravel.com, a Division of Montrose Luxury Travel Expo Agenda: Fam Trips, Deals & Incentives, Calendar Hyatt comes to Curaçao New Hotels and Resorts in Asia CLIA Tightens Qualifications for ID Tripology Links Agents to Clients In the Spotlight Agent Access Editorial Index Advertising Index Trendwatch

Travel Agent - August 18, 2008

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